Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a minimum A$25 million (US$17.8 million) increase to its June 2029 Kangaroo bond, on 23 April. The forthcoming transaction has indicative price guidance of 42 basis points area over semi-quarterly swap, equivalent to 54.85 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager TD Securities.
On 23 April, NWB Bank (AAA/Aaa) launched an indicative A$15 million (US$10.7 million) increase to its May 2029 Kangaroo bond with price guidance of 53.5 basis points area over semi-quarterly swap. The deal is expected to price on the day of launch, according to sole lead manager Daiwa Capital Markets.
The third week of April was relatively quiet for new issuance in the lead up to the Easter long weekend. On the Australian domestic front, Downer Group Finance printed a seven-year, A$300 million (US$215.5 million) deal and Bank of Queensland issued a three-year, A$500 million floating-rate note. Resimac priced a NZ$250 million (US$168 million) residential mortgage-backed securities (RMBS) deal in New Zealand.
In the wake of its latest New Zealand residential mortgage-backed securities (RMBS) deal, Resimac says structural changes in the local mortgage market are opening opportunities for nonbanks in prime mortgage lending and, therefore, securitisation. The issuer also says the depth and breadth of bids for its paper broadened in the new transaction.
Downer Group Finance (Downer) priced its first Australian dollar deal since 2015 on 15 April. Issuer and leads say significant developments in Downer’s business composition opened the deal up to a broader suite of investors, while prevailing market sentiment induced a rapid book build and tightened pricing.
The scale of demand for Woolworths’ debut green bond – which supported a significant price revision – further demonstrates the potential of the asset class for local corporate borrowers, issuer and leads say. Demand for certified sustainable bonds could even be sufficient to put mid-curve domestic issuance on a pricing par with bank loans and thus entice more issuers to market.